Is Georgetown, Kentucky Good for Airbnb Investment?

To start an Airbnb in Georgetown, Kentucky, begin by researching local zoning laws and regulations through the Georgetown Planning and Zoning Commission, as Scott County and Georgetown may have specific short-term rental ordinances that require registration or permits. Contact Georgetown City Hall at 502-863-7850 to verify current requirements, as many Kentucky municipalities implemented STR regulations between 2018-2022. Next, find a suitable property by searching MLS listings, working with local realtors like Coldwell Banker or RE/MAX agents familiar with Georgetown's neighborhoods near Georgetown College or downtown areas, with median home prices around $180,000-250,000 as of 2023. Once you secure a property, obtain necessary permits including a business license from Georgetown City Clerk, ensure compliance with fire safety codes, and verify your homeowner's insurance covers short-term rentals or purchase additional coverage through companies like Proper Insurance or CBIZ. Furnish the property with quality furniture from local stores like Ashley HomeStore in Lexington or online retailers, focusing on comfortable beds, essential amenities, and Georgetown-themed decor highlighting the area's bourbon heritage and horse country charm. Create your Airbnb listing with professional photos, competitive pricing around $75-125/night based on local market rates, and highlight proximity to Kentucky Horse Park, Toyota Manufacturing, and downtown Lexington (30 minutes away). Finally, manage your property using Airbnb's platform or property management software like Hostfully, establish relationships with local cleaning services, and consider hiring Georgetown-based co-hosts if needed for guest communication and maintenance coordination.

To identify profitable short-term rental properties in Georgetown, Kentucky, focus on locations within 2-3 miles of Georgetown College and Toyota Motor Manufacturing Kentucky, as these drive consistent demand from visiting families, business travelers, and contractors. Target properties near downtown Georgetown's historic district, particularly along Main Street or within walking distance of restaurants and shops, as well as areas with easy highway access to Lexington (20 minutes) and Louisville (45 minutes). Look for 2-4 bedroom homes built after 1990 with modern amenities, full kitchens, dedicated parking, and outdoor spaces, as these appeal to families visiting the college or Toyota facility. Price analysis should target properties under $200,000 that can generate $100-150 per night, with occupancy rates of 60-70% being realistic given the steady corporate and educational demand. Research competition using AirDNA and Mashvisor to analyze the 15-25 existing STR properties in Georgetown, noting that most successful listings emphasize proximity to Toyota and Georgetown College while offering competitive rates 10-15% below Lexington properties. Utilize the Scott County Property Valuation Administrator website for property records, partner with local property management companies like Bluegrass Property Solutions, and monitor Georgetown's STR regulations through the city planning department, as the market remains relatively undersaturated compared to nearby Lexington, creating opportunities for well-positioned properties targeting the consistent business and educational travel segments.

To obtain an Airbnb/STR permit in Georgetown, Kentucky, you must first contact the Georgetown Planning and Zoning Department at City Hall located at 100 Court Street to determine if short-term rentals are permitted in your specific zoning district, as Georgetown requires conditional use permits for STRs in most residential areas. Submit a conditional use permit application along with a site plan, property survey, proof of property ownership or lease agreement, business license application, and liability insurance documentation showing minimum $1 million coverage. The application fee is typically $150-200 for the conditional use permit plus $50 for the business license, and you'll need to pay for public notice advertising costs of approximately $75-100. Schedule a pre-application meeting with planning staff, then submit your complete application which will be reviewed by the Planning Commission at their monthly meeting, requiring public notification to neighboring properties within 200 feet. The entire process takes 45-60 days from application submission to final approval, and you must comply with Georgetown's specific requirements including maximum occupancy limits based on bedrooms, adequate parking (typically 2 spaces minimum), proper waste management, 24-hour contact information for guests, and annual renewal of both the conditional use permit and business license. Once approved, you'll receive your permit and can legally operate your short-term rental, but must maintain compliance with all city ordinances and zoning conditions.

Short-term rentals (STRs) are legal in Georgetown, Kentucky, but operate under specific regulations established by the city. Georgetown requires STR operators to obtain a business license and comply with zoning restrictions that generally limit short-term rentals to certain residential areas while prohibiting them in some historic districts and specific neighborhoods. The city implemented these regulations around 2019-2020 following increased STR activity, requiring operators to register their properties, maintain liability insurance, and adhere to occupancy limits and noise ordinances. Properties must meet safety standards including smoke detectors and emergency exits, and operators are subject to regular inspections. Recent changes have included stricter enforcement of parking requirements and neighbor notification procedures, with the city maintaining a registry of approved STR properties. Georgetown's approach balances allowing the economic benefits of short-term rentals while protecting residential neighborhood character through reasonable oversight and compliance requirements.

The best Airbnb investment areas in Georgetown, Kentucky include the Historic Downtown District around Main Street, which attracts visitors to the Scott County Museum, antique shops, and local festivals like the Georgetown Christmas Parade. The Toyota Motor Manufacturing area on Cherry Blossom Way draws significant business travel demand from corporate visitors, contractors, and employees needing temporary housing. The Cardome Centre vicinity near US-25 appeals to event attendees for weddings, conferences, and retreats at this historic venue. The Georgetown College area along East Main Street benefits from university-related travel including prospective students, visiting faculty, alumni events, and graduation ceremonies. The Elkhorn Creek corridor offers scenic appeal for nature tourists and those attending outdoor events at the nearby parks. The Royal Spring Park neighborhood attracts history enthusiasts visiting Kentucky's first settlement site and families attending youth sports tournaments at the recreational facilities.

Georgetown, Kentucky imposes a transient room tax of 3% on short-term rental accommodations including Airbnbs, which applies to stays of less than 30 consecutive days. This tax is collected directly from guests at the time of booking or check-in and must be remitted monthly to the Georgetown Tourism Commission by the 20th of the following month using Form TR-1. Additionally, Kentucky state sales tax of 6% applies to lodging services, which Airbnb typically collects and remits directly to the Kentucky Department of Revenue on behalf of hosts through their automated tax collection system implemented in 2019. Scott County may also impose a local occupancy tax of up to 1%, though this varies by specific location within the county. Hosts must register with the city clerk's office and obtain a business license before operating, and properties used exclusively for personal residence purposes for more than 14 days per year may qualify for certain exemptions. The Georgetown Tourism and Convention Commission oversees compliance and enforcement of these regulations, with penalties for non-compliance including fines of $100-500 per violation.

Starting an Airbnb in Georgetown, Kentucky requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically runs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and basic appliances. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations average $2,000-3,000. Permits and fees in Scott County include business license ($50-100), short-term rental permit if required ($100-300), and potential HOA approval costs. Insurance for short-term rentals costs approximately $1,200-1,800 annually, with the first year paid upfront. Utility deposits and initial connections for electricity, water, gas, internet, and cable total around $500-800. First six months of operating costs including utilities ($150-200/month), cleaning services ($50-75 per turnover), supplies and maintenance ($100-150/month), platform fees (3% of bookings), and marketing expenses total approximately $3,000-4,500, assuming moderate occupancy rates during the initial period.

Airbnb properties in Georgetown, Kentucky typically generate annual revenues between $15,000-$35,000 for entire homes, with average daily rates ranging from $75-$120 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-25% for well-managed properties, with successful hosts achieving occupancy rates of 60-75% by targeting visitors to nearby Toyota Manufacturing, Kentucky Horse Park, and University of Kentucky events. Properties within 10 miles of Lexington command premium rates, while those featuring horse farm views or historic charm perform particularly well. A typical 3-bedroom home generating $28,000 annually might incur $18,000 in expenses (mortgage, utilities, cleaning, maintenance, taxes), yielding approximately $10,000 net profit or 36% margin before depreciation and capital improvements, though success heavily depends on property location, host responsiveness, and seasonal demand fluctuations tied to Kentucky's tourism and business travel patterns.

Based on Georgetown, Kentucky market conditions, Airbnb investments typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14% depending on property type and location within the city. Properties near Georgetown College and downtown areas tend to perform better, with investors commonly seeing profitability within 18-24 months of initial investment. The market benefits from consistent demand from university visitors, business travelers to Toyota Motor Manufacturing Kentucky, and tourists exploring the Bluegrass region. Average daily rates range from $85-$130 with occupancy rates of 65-75% annually, though properties with unique amenities or prime locations can achieve higher performance metrics. Initial investment recovery typically occurs within 6-8 years, with many investors reporting gross rental yields of 15-22% when factoring in Georgetown's relatively affordable property acquisition costs compared to larger Kentucky markets like Louisville or Lexington.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Georgetown, Kentucky. Local real estate agents who focus on investment properties in the Georgetown area include agents from Coldwell Banker McMahan, RE/MAX Creative Realty, and Keller Williams Bluegrass Realty who have experience with Airbnb investment properties. National services that can assist Georgetown investors include BiggerPockets for networking and deal analysis, Mashvisor for market analysis and property evaluation, AirDNA for short-term rental data and market insights, and Awning for full-service Airbnb investment management. Local property management companies such as Kentucky Lake Vacation Rentals and Bluegrass Property Solutions can help manage Airbnb properties in the Georgetown market. Additional national platforms like Roofstock, which occasionally features short-term rental properties, and investment-focused real estate platforms like FortuneBuilders and Real Estate Pro Network can provide resources and connections for finding profitable Airbnb investments in Georgetown's growing tourism market near Lexington.